San Diego, CA -- (SBWire) -- 03/09/2022 --An investor, who purchased shares of MP Materials Corp. (NYSE: MP; FVAC; FVAC WS; FVAC.U), filed a lawsuit over alleged violations of Federal Securities Laws by MP Materials Corp. f/k/a Fortress Value Acquisition Corp.
If you purchased shares of MP Materials Corp. (NYSE: MP; FVAC; FVAC WS; FVAC.U), you have certain options and for certain investors are short and strict deadlines running. Deadline: April 25, 2022. NYSE: MP; FVAC; FVAC WS; FVAC.U investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Las Vegas, NV based MP Materials Corp. engages in the ownership and operation of integrated rare earth mining and processing facilities. The Company was previously known as "Fortress Value Acquisition Corp." ("FVAC") and operated as a special purpose acquisition company ("SPAC").
In November 2020, Fortress Value Acquisition Corp consummated a merger with MP Mine Operations LLC ("MPMO") and Secure Natural Resources LLC ("SNR" and, collectively with MPMO, "Legacy MP Materials"), whereby, among other things, Legacy MP Materials became an indirect wholly-owned subsidiary of Fortress Value Acquisition Corp, and Fortress Value Acquisition Corp changed its name from "Fortress Value Acquisition Corp." to "MP Materials Corp." (the "Business Combination").
As a result of the Business Combination, the Company began to own and operate the Mountain Pass Rare Earth Mine and Processing Facility ("Mountain Pass") in California.
On February 3, 2022, short seller Bonitas Research published a report (the "Report") accusing MP Materials Corp. of executing an "abusive transfer price manipulation scheme" with a Chinese partner. Specifically, the Report alleged that since Q2 2021, MP and Shenghe Resources Holdings Co. ("Shenghe") "executed an abusive transfer price manipulation scheme whereby Shenghe overpaid for MP concentrates to artificially inflate MP's profits, [which] conveniently coincided with the SPAC insider lock-up expiration so that MP insiders could sell MP stock at artificially inflated prices." In addition, the Report cites a German academic study that concluded MP's ore at Mountain Pass is "not economically viable to harvest for rare earth metals while 12 of the other 13 well known rare earth mines outside of China are economically feasible" at current market prices.
Shares of MP Materials Corp. (NYSE: MP) declined from $53.03 per share on January 5, 2022, to $31.80 per share on February 3, 2022.
The plaintiff claims that between May 1, 2020 and February 2, 2022, the Defendants made false and/or misleading statements and/or failed to disclose that, Fortress Value Acquisition Corp had overstated its due diligence efforts and expertise with respect to identifying target companies to acquire, that Fortress Value Acquisition Corp performed inadequate due diligence into Legacy MP Materials prior to the Business Combination, or else ignored significant red flags regarding, inter alia, Legacy MP Materials' management, compliance policies, and Mountain Pass's profitability, that as a result, the Company's future business and financial prospects post-Business Combination were overstated, that MP Materials engaged in an abusive transfer price manipulation scheme with a related party in the People's Republic of China ("China") to artificially inflate the Company's profits, that MP Materials' ore at Mountain Pass was not economically viable to harvest for rare earth metals, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of MP Materials Corp. (NYSE: MP; FVAC; FVAC WS; FVAC.U) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
MP Materials Corp. (NYSE:MP; FVAC; FVAC WS; FVAC.U) Investor Notice: Lawsuit Alleges False and Misleading Statements
A lawsuit was filed on behalf of investors in MP Materials Corp. (NYSE:MP; FVAC; FVAC WS; FVAC.U) shares over alleged securities laws violations..